Ally shoring: Expanding manufacturing operations into Mexico

The Manufacturing Executive · 15 Nov 2022 · 29m · Episode 128

What this episode covers

Alberto Villarreal, founder and managing director of Nepanoa, explains 'ally shoring'—expanding US manufacturing operations into Mexico and Latin America—as a strategic alternative to offshoring to Asia. He outlines key benefits including 50% labor cost reductions, USMCA legal protections, and shared time zones, while noting that over 75% of Fortune 1000 companies already operate in Mexico. Villarreal details the expansion process, from defining strategic intent to navigating financing barriers and workforce demographics, citing success stories like Solar Plastics and a Dallas-based plastic assembler who relocated from China.

Mentioned

Companies
Nepanoa, Gorilla 76, Mission Foods, Caterpillar, John Deere, Mattel, Lego, Solar Plastics
Also
USMCA, Georgia State University

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